Sell Tata Steel 500 Call: Amit Trivedi

Amit Trivedi of Investworks.in told CNBC-TV18, "Metals in general are quite weak. In Tata Steel, one can sell higher strike Calls, we think 500 Call is giving good risk return ratio. So you can sell the 500 Call at Rs 1-1.50. So, you are getting around Rs 1,000 of cash inflow. On a margin deployed of Rs 40,000 you are making 1.3 percent returns on Tata Steel if it doesn’t cross 500 in next 12-15 days."

At 13:44 hrs Tata Steel was quoting at Rs 441, down Rs 10.60, or 2.35 percent. It has touched an intraday high of Rs 451.85 and an intraday low of Rs 438.90.

Disclosure: Analyst might have traded in some of the securities or the strategies.